Two highly successful IPOs late last week by Chinese tech firms may officially mark the arrival of spring for such offerings after a long winter. But now that spring has finally come on so strong, the new question becomes: Is an overheated summer on the way? My answer to that question is “quite possibly”, following the very strong debut last Friday for Qunar (Nasdaq: QUNR) the fast-rising online travel site that hopes to someday take on industry leader Ctrip (Nasdaq: CTRP). Qunar’s meteoric debut follows the strong opening a day earlier for online classified advertising site 58.com (NYSE: WUBA), which rose 41 percent on its first trading day. Read Full Post…
China Bank Buying Binge Heats Up
Note: After first publishing this post, CCB formally announced it will purchase 76 percent of BicBanco for 13.6 billion Brazilian reais ($720 million). To view the announcement, click here.
After living in China for a while, one comes to realize that new trends among big state-owned enterprises often happen quickly and in waves in response to directives from Beijing. That looks like the case among the nation’s big 4 lenders, with word that China Construction Bank (CCB) (HKEx: 939; Shanghai: 601939) is in late stage talks for its first major global acquisition of a bank in Brazil. CCB’s sudden interest in global acquisitions comes just weeks after another domestically-focused big 4 lender, Agricultural Bank of China (AgBank) (HKEx: 1288; Shanghai: 601288) was also reportedly in talks to buy Hong Kong’s Wing Hang Bank (HKEx: 302) Read Full Post…
News Digest: November 2-4
The following press releases and media reports about Chinese companies were carried on November 2-4. To view a full article or story, click on the link next to the headline.
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- Qunar (Nasdaq: QUNR) Doubles In Debut As Chinese Stocks Make US Comeback (English article)
- Lenovo (HKEx: 992) To Enter US Handset Market (English article)
- China Construction Bank (HKEx: 939) Buys 76 Pct Of BicBanko For $720 Mln (HKEx announcement)
- PPTV Won’t Enter Smart TV After Suning (Shenzhen: 002024) Investment – CEO (Chinese article)
- Canadian Solar (Nasdaq: CSIQ) In 100MW Supply Deal With 3 Gorges New Energy (PRNewswire)
- Latest calendar for Q3 earnings reports (Earnings calendar)
BYD Under Fire On Labor, Tech Fronts In California
After a year of relative calm in which its shares have surged, electric vehicle (EV) aspirant BYD (HKEx: 1211; Shenzhen: 002594) is once embroiled in a couple of mini-scandals involving its labor practices and technology in California. While I doubt that either of these problems will have a long-term impact on the company, they do highlight the many speed bumps that BYD and other Chinese automakers will face as they move into the global marketplace. The risks are particularly high for BYD, which is 10 percent owned by billionaire investor Warren Buffett, since the company is relying heavily on global markets to fuel its EV business. Read Full Post…
Suntech Finds Friend In Wuxi, Foe In NY
Former solar energy pioneer Suntech (NYSE: STP) is getting caught in an increasingly complex web of global forces as it tries to emerge from bankruptcy, with the latest coming from its hometown of Wuxi and from a bankruptcy court in New York. While such tugs-of-war probably aren’t uncommon in such a complex case, Suntech’s strong international connections mean its reorganization could take longer than many previously expected. The case also highlights the unusual risks associated with companies that do so much trans-border business. The latest developments have seen Suntech’s hometown of Wuxi emerge as a major new investor in the company, and a group of debtors force it into a US bankruptcy court. Read Full Post…
China Tech Stocks Back In Vogue With 58.com, Qunar IPOs
How quickly things can change! China tech stocks are suddenly back in vogue on Wall Street after more than 2 years of frigid sentiment, as evidenced by an unexpected surge in demand for 2 new offerings from classified ads site 58.com (NYSE: WUBA) and online travel agent Qunar. My initial reaction to the strong demand is relief, since it previously looked like shares of Chinese tech firms might remain in an endless winter after a series of accounting scandals in 2011 that rocked investor confidence. But now I’m just a bit concerned that this sudden explosion in interest may lead to unrealistic expectations for these companies, causing turbulence for their shares.
News Digest: November 1, 2013
The following press releases and media reports about Chinese companies were carried on November 1. To view a full article or story, click on the link next to the headline.
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- 58.com Jumps More Than 44 Pct In NY Trading Debut (Chinese article)
- Suntech (NYSE: STP) To Contest Involuntary Bankruptcy Filing In New York (PRNewswire)
- Huawei Named Premium Sponsor And Mobile Partner Of AC Milan (English article)
- BYD (HKEx: 1211) Accused of Labor Violations By State Of California (English article)
- China Telecom (HKEx: 278), Unicom (HKEx: 762) Announce VNO Partners (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Qunar Boosts IPO Price Range, NQ Hit Again
Anyone who was worried that the recent short-seller attack on security software provider NQ Mobile (NYSE: NQ) might hurt broader sentiment towards Chinese firms on Wall Street can relax, following word that 1 of 2 upcoming IPOs is drawing strong investor interest. That’s my quick assessment, based on a report that online travel agent Qunar has sharply boosted the price range for its upcoming IPO that will probably launch in the next few days. That could mean another IPO from online classified jobs site 58.com should also price well later on Thursday before its New York trading debut. Meantime, NQ continues to struggle as it comes under yet another attack and a string of rumors about clients who are cutting business ties with the company. Read Full Post…
Smartphone Cleanup Grows, Amid Quality Concerns
I usually have more criticism than praise for China’s bureaucratic telecoms regulator, but today I have to commend the Ministry of Industry and Information Technology (MIIT) for a ground-breaking move that other countries would be wise to follow in the fast-moving smartphone space. That move will require smartphone makers to list all the apps that come pre-installed on their models, much the way that food makers list the ingredients that their products contain. While the move looks good for consumers and the industry’s overall development, smartphone makers are unlikely to embrace this measure that will tell consumers about all the unwanted and often invasive apps that come included on their new smartphones. Read Full Post…
Weibo: Huawei-Lenovo, Alibaba-Baidu In New Courtships?
China’s microblogging sphere is buzzing with a series of new posts that hint at a couple of budding friendships in the nation’s tech realm, one between smartphone aspirants Huawei and Lenovo (HKEx: 992) and the other between e-commerce titan Alibaba and online search leader Baidu (Nasdaq: BIDU). Of course it’s quite possible that the tweeting is just casual conversation by company executives on their Weibo accounts. But both instances also hint at the potential for future tie-ups that could help these all 4 of these companies attain their different strategic aims. Read Full Post…
News Digest: October 31, 2013
The following press releases and media reports about Chinese companies were carried on October 31. To view a full article or story, click on the link next to the headline.
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- China Construction Bank (HKEx: 939) In Talks To Buy Brazil’s BicBanco: Source (English article)
- ICBC (HKEx: 1398) Announces Q3 Results (HKEx annnouncement)
- Suntech (NYSE: STP) Receives Investment Letter of Intent From Wuxi Guolian (PRNewswire)
- China Telecom, NetEase (Nasdaq: NTES) Mobile IM Service Reaches 30 Mln Users (English article)
- Suning (Shenzhen: 002024) Posts First-Ever Quarterly Loss (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
